Denver Water Implements Higher Rates to Combat Drought and Encourage Water Conservation

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Denver Water Implements Higher Rates to Combat Drought and Encourage Water Conservation
DroughtWater ConservationDenver Water

In response to record-low snowpack and widespread drought, Denver Water is enacting higher water rates for customers to reduce outdoor water use. The new pricing structure, starting in May, aims to promote water conservation through tiered pricing and restricted watering schedules.

Denver Water is implementing higher water rates for some customers in response to severe drought conditions and record-low snowpack. The utility, which serves over 1.5 million people in the Denver metropolitan area, announced the new pricing structure in an effort to curb outdoor water use. The decision, effective from May and lasting until April 2027, marks the return of drought pricing after a hiatus of over two decades, the last instance being in the historically dry year of 2002.

This move aligns with Stage 1 drought restrictions enacted on March 25, which included limitations on lawn-watering to twice per week and a recommendation to postpone sprinkler system activation until mid-May. The new drought charges are designed to signal the heightened value of water during dry periods, while safeguarding essential indoor water use from surcharges, according to Alan Salazar, Denver Water's CEO.\The new pricing structure employs a tiered system. Customers' average monthly indoor water usage is calculated using their water consumption from January, February, and March—months when outdoor water usage is minimal. Tier 1, representing average indoor water usage, will not be subject to a surcharge. However, customers exceeding their average indoor usage will enter Tier 2, where they will pay an additional $1.10 per 1,000 gallons for water used above the indoor average and up to 15,000 gallons per month. Tier 3 applies to water usage exceeding the Tier 2 threshold, with an additional charge of $2.20 per 1,000 gallons. For residents within Denver city limits, the Tier 2 rate will increase from $5.44 to $6.54 per 1,000 gallons after exceeding their winter baseline. The Tier 3 rate will rise from $7.25 to $9.90 per 1,000 gallons. Denver Water estimates that a single-family's annual water bill could increase by approximately $30 if they reduce water usage by 20% over the year. Those who don't reduce their water consumption could see their bills rise by about $45.\The drought pricing strategy is complemented by other measures aimed at water conservation. Denver Water also introduced an outdoor watering schedule for residents, contingent on their addresses. Watering is permissible before 10 a.m. or after 6 p.m. to minimize evaporation. Properties with even-numbered addresses can water on Sundays and Thursdays, while those with odd-numbered addresses can water on Wednesdays and Saturdays. The utility anticipates that raising water prices will not only encourage customers to conserve water but also help offset reduced revenue resulting from lower water consumption. To prepare for reduced revenue, Denver Water has already implemented a hiring freeze and reduced its spending. Officials, including Chief Financial Officer Angela Bricmont, have expressed confidence in the utility's ability to maintain its financial stability during the drought. The utility also takes actions to prevent water waste, like issuing a warning to a property owner who was found watering their lawn late in the afternoon on July 10, 2012, as reported by Edward Kosinski. The property owner received a warning due to excessive water runoff

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